Identity Theft Feed

Unemployment benefits can help relieve some of the sting of losing your job. But there are downsides. The monthly amounts again are fully taxable. And during the COVID pandemic, criminals have had a field day getting fraudulent payments, and causing tax troubles for those individuals whose identities they stole. The COVID-19 pandemic and employment still are inextricably linked. When the coronavirus hit the United States in 2020, the concern was for the companies that had to shut down, and their employees who suddenly were without paychecks. Congress passed a series of COVID relief bills that provided relief options for companies... Read more →


House Oversight Committee members also investigating ID.me contracts, verification methods Photo by cottonbro In early February, the Internal Revenue Service announced plans to transition from ID.me's facial scanning identity verification system. The third-party service's scanning technology raised privacy concerns. A few weeks later, the IRS elaborated on its taxpayer identity process. It said the facial recognition would remain, but as an option, not a requirement. Taxpayers instead could participate in a live, virtual interview to prove they are legitimately opening their own online taxpayer account. The IRS also indicated that it eventually would join other federal agencies in using Login.Gov,... Read more →


One of the big selling points of taking your taxes electronic is that the Internal Revenue Service's turnaround is quicker. The tax agency has long touted that when taxpayers e-file and have their refunds direct deposited, the tax cash usually shows up within 21 days. Usually. The only thing certain about taxes is that they'll find a way to frustrate you. That's the case when e-filed refunds take longer. Here are six reasons, from the IRS and tax community, as to why your refund may be delayed. 1. Math errors: Yes, taxes are complicated. That's why most of us use... Read more →


Photo by cottonbro from Pexels If you're not comfortable with facial identification being part of the Internal Revenue Service personal taxpayer account creation process, you've now got other options. The tax agency, which earlier this month said it would end the controversial validation system used by contractor ID.me, says you can prove you are you via a live, virtual interview. "No biometric data — including facial recognition — will be required if taxpayers choose to authenticate their identity through a virtual interview," the IRS said in its brief statement announcing the move. Other ID OK options: Or you can wait... Read more →


New phishing scam targets tax pros, but everyone needs to be on guard The Internal Revenue Service today warned tax professionals about a new spearphishing scam. I'm surprised we made it into February before the latest tax scam appeared. This email scam uses the IRS logo. It also tries to ramp up the already urgent tax season by using a variety of subject lines, such as "Action Required: Your account has now been put on hold." The IRS provided bogus text of this scam below. Your account has now been put on hold ALL preparers are required to apply security... Read more →


Photo by cottonbro from Pexels A planned conversion of taxpayer accounts to a system that required use of a third-party facial recognition system apparently is no more. IRS Commissioner Chuck Rettig announced the about face today in a brief statement. "The IRS takes taxpayer privacy and security seriously, and we understand the concerns that have been raised," said Rettig. "Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition." The agency is, in its words, transitioning away from its deal with ID.me, although that wasn't specifically... Read more →


Photo by cottonbro from Pexels The Internal Revenue Service is rethinking its decision to force taxpayers to use a private identity verification company in order to access their online accounts. The 180 came after blowback from Congress and consumer and privacy advocates. The reassessment doesn't mean the IRS is giving up on ways to strengthen its online security. Rather, according to a Treasury statement reported by Bloomberg, the IRS is looking at ways to "balance ease of taxpayer access" with increased protections against criminals who use stolen taxpayer identities to file for fraudulent tax refunds. The increased security raised public... Read more →


The Internal Revenue Service will go beyond its current multifactor authentication online access protocol when it comes to signing in to taxpayer accounts. The Internal Revenue Service continues its efforts to get more of us to interact with it electronically. It also wants to make sure those transactions are secure. So later this year, the IRS is implementing a new security protocol for folks who want to set up or manage an online taxpayer account. But it appears, at least based on anecdotal online and social media reactions, that the move might backfire. More steps to get info: Last week,... Read more →


Photo by Kay Bell The 2022 filing season is already underway for many taxpayers even though the Internal Revenue Service won't start processing their returns until Jan. 24. But these early bird filers are on to something. Here are eight reasons you might want to consider completing your Form 1040 soon. 1. To get the rest of your Child Tax Credit. Around 36 million families last year got an early tax benefit. The IRS delivered half of their 2021 tax year Child Tax Credit (CTC) in advance as monthly payments from last July through December. The maximum advance amounts were... Read more →


If you think online crooks are just going after big businesses, think again. Smaller firms are prime cyberattack targets. Go big or go home, unless you're a cybercriminal targeting businesses. More than 70 percent of cyberattacks are aimed at companies with 100 or fewer employees. That revelation is from the Internal Revenue Service and its Security Summit partners as this year's National Tax Security Awareness Week was winding down. It's also this weekend's By the Numbers figure. In going after smaller business, con artists target credit card or payment information, the business identity information, or data on employees. "Thieves may... Read more →


Gift cards make great presents for family and friends, but they cannot be used to pay taxes. (Gift card wreath via Pinterest) We all have people on our holiday gift lists who are hard — OK, impossible — to shop for. When I struggle to find the perfect gift, I follow my personal credo: Say it with cash. Or, more often, with plastic. Yes, I give gift cards. And if family and friends are reading this, I am happy to get them. But one place where gift cards aren't welcome is the Internal Revenue Service. This IRS is making a... Read more →


Photo by RODNAE Productions from Pexels I know, it seems like it's all crypto all the time of late here at the ol' blog. But that's because that's what's happening right now in the tax world. There is, of course, the new tax reporting rules for digital assets, including cryptocurrency, that are part of the just-enacted transportation law. One of the reasons lawmakers approved the closer look by the Internal Revenue Service at digital transactions is because law enforcement officers have found the sector rife with criminal tax activity. It's not just anecdotal reports. OK, it is some anecdotal reports,... Read more →


Shutterstock There's one terrifying ghoul who hangs around long after Halloween. In fact, he and his ilk have been busy all year. It's the tax scammer. The Federal Trade Commission (FTC) just this week warned that scammers are sending yet another phony Internal Revenue Service email about COVID-19 relief payments. "There's a fake IRS email that keeps popping into people's inboxes. It says that you can get a third Economic Impact Payment (EIP) if you click a link that lets you 'access the form for your additional information' and 'get help' with the application," says Cristina Miranda of the FTC's... Read more →


A record number of unemployment claims were filed due to COVID-19 layoffs. But billions of dollars of those benefits went to crooks who falsely filed for them. The weekly jobless reports from the U.S. Bureau of Labor Statistics (BLS) are always watched closely. They're seen as a sign of how well (or not) the economy is doing. The reports of how many people are (or aren't) looking for work have taken on added significance during the COVID-19 pandemic. The latest count was good news. BLS' Sept. 2 report showed that the United States saw the least number of new unemployment... Read more →


You'd think after almost 18 months of dealing with COVID-19, we'd all be wise to related scams. Apparently, we aren't. The coronavirus pandemic has been Christmas for con artists looking to cash in on all-too-common tales of woe and hardship, writes Los Angeles Times business columnist David Lazarus. He leads off his article with the tale of a crook impersonating the neighbor of a California couple. In an email that looked to be from the neighbor's real online address, the crook invoked an extended family COVID tragedy. But while carefully crafted, the con wasn't quite slick enough to fool these... Read more →


COVID-19 just won't let go. A tropical system is heading for the Gulf of Mexico. And it's Friday the 13th. Yep, today is a trifecta of the unwanted. The bad news — of course I'm starting with it on this day! — is that every year has at least one Friday the 13th. The ominous, for some, day shows up one to three times a year. There were two in 2020. The good news for 2021 is that today is the only Friday the 13th of the year. The last time that happened was Friday, May 13, 2016. If you... Read more →


The Internal Revenue Service has wrapped up its 2021 version of the Dirty Dozen Tax Scams. In announcing the cons by category, the agency was able to elaborate more on each trick on the list. In case you missed the posts earlier this week, here are the ol' blog's posts on each of them: Pandemic related scams, aka Part 1, which focuses on attempts steal COVID-19 Economic Impact Payments (EIPs) and other tax-related coronavirus relief distributed by the IRS, from Monday, June 28; Personal information cons, or Part 2, with a look at phishing, its cousin voice phishing or vishing,... Read more →


The COVID-19 pandemic presented new opportunities for crooks, as noted in yesterday's post on the first group of 2021's Dirty Dozen Tax Scams. Today, however, we're back with the golden oldies, as in trying to steal your gold. And your identity. These Personal Information Cons use a variety of techniques that have been around for years. There's phishing, its cousin voice phishing or vishing, Internal Revenue Service impersonators, social media trolling and tricks, and ransomware. Regardless of which illegal method is used, the goal is the same. Criminals try to get as much of your personal information as possible, including... Read more →


While the Internal Revenue Service is working on recalculating taxes paid on unemployment benefits by early filers, other taxpayers are dealing with potential tax bills on money they didn't get. They are victims of unemployment insurance fraud. And their numbers increased last year as millions of people filed for the jobless assistance in the wake of the COVID-19 pandemic. To help people dealing with unemployment identity theft, the Department of Labor (DoL) has launched a new website. Alerted by mail: Many don't learn that unemployment benefits have been fraudulently collected in their names until they receive something in the mail.... Read more →


Ah, college days. Studying, working between and after classes and now trying to avoid becoming a tax scam victim. (Photo by Tim Gouw via Unsplash) Many college students shoehorn jobs into their study schedules to help pay for their continuing educations. In addition to pocketing that cash throughout the year, many of these young workers also look forward at filing time to tax refunds from their jobs. So do crooks. The Internal Revenue Service today warned of an ongoing phishing scam in which the perpetrators are targeting education institutions, including students and staff with email addresses ending in the .edu... Read more →